Money grew faster

Money grew faster than goods

Korea was a lot like the village. The bundles of bills on the left are the money in the country; the boxes on the right are the goods and services made in the country. Each starts as one unit in 1986, the first year with money data. By 2025, goods and services grew about 7 times, but money grew about 88 times. Surprised? Most of it is not paper money but numbers in bank accounts. Just like the village, money grew much faster than goods and became plentiful, so the numbers on price tags went up. Wages became bigger numbers for the same reason. But who made all this money?

Why?Money grew 88 times, but prices did not rise 88 times. Goods grew about 7 times, and people also kept more money in the bank instead of spending it right away.

Learn more"Money in the country" means notes and coins plus bank deposits (broad money, M2). "Goods and services" means the amount the country produces in a year (real GDP). The money statistics changed their method in 2003; the two parts are joined (approximate).

Money in the country, 2025 (1986 = 1)

88×

Money in the country, 1986

about 48 trillion won (old method)

Money in the country, 2025

about 3,994 trillion won

calculated from Bank of Korea ECOS data and recorded ramen prices